Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Hedge funds business model under considerable pressure

By Ashleyjohn Subscribe to RSS | May 23rd 2012 | Views:
loading
 
  



Hedge fund industry has been under pressure from all directions for last couple of years. The entire business model is under intense focus. Investors are asking questions about the ability of the managers to deliver consistent results. They are closely looking at the 2 and 20 charges that are paid to the fund managers as fee. On the one hand, there is intense pressure to provide good performance, whereas on the other end, their sources of information and ideas are getting more and more ineffective. This dilution could be due to a stricter vigilance by the regulators on research practices of the investment banks, or reducing research infrastructure in the sell side community. This is often leading the funds having to deploy larger buy-side research operations with their own companies. The research teams often use the help of outsourced financial research companies to augment their coverage and establish a highly effective approach that greatly enhance their analytical muscle.

Gaurav Gupta, Executive Director at Decimal Point Analytics, a research consulting company that provides research solutions to Global Hedge Fund industry, said that managers need to move towards a model which includes an optimal internal engine that generates unique investment ideas. Hedge funds have to show how deep their research operation really is. Dependence on ideas/research provided by brokers is hardly going to convince investors that the hedge fund manager can make a difference.

Decimal Point Analytics creates solutions that help establish a deeper and wider research operation. Some of the operations include running specific research processes such as daily summaries, financial modeling, and any other such processes that is otherwise not possible for the senior analyst to cover on their own. These solutions often involve deploying technology for automated operation and manual processes to ensure stable and consistent results. This is a very useful research service for Hedge Funds.

Ashleyjohn - About Author:
Decimal Point Analytics is a full service financial research company providing high end research and analytics services to clients based around the world. For more details, visit us at http://www.decimalpointanalytics.com/

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/investing-articles/hedge-funds-business-model-under-considerable-pressure.htm

Related Investing Articles Subscribe to RSS

Have a safe and secured financial life
Published by Pramod Kumar Singh on May 23rd 2012 | Finance
Know about the different financial investment options and invest in various financial products to ha...
 
Payday Text Loans UK- Mobile phones give financial amounts!
Published by Cameron White on December 8th 2011 | Finance
Payday text loans UK is best way to overcome small fiscal hardships and it’s not difficult to get ...
 
Another financial storm to hit the Britain
Published by Look Right on January 25th 2012 | Finance
Another recession is approaching the UK economy, as a newly constituted finance watchdog has reveale...
 
HOA management- Capable providers for financial as well as property management
Published by Ema Sis on January 12th 2012 | Finance
HOA management companies shall be actual asset for communal administration amenities. They undertake...
 
Right Process of financial Planning and need of getting a Financial Planner Sydney
Published by Avena Sowell on December 8th 2011 | Finance
Process of financial planning involves high level of knowledge and skills as financial markets keep ...
 
Achieve financial independence with Ameriprise planners
Published by Advisor India on August 4th 2012 | Investing
Have you saved enough for your future? Are you sure your retirement benefits are sufficient to pull ...
 
Bookkeeping is important while deciding future financial policies
Published by Nelson on February 1st 2012 | Finance
Complete End to End Business Solution offering various services such as Incorporation, Bookkeeping, ...
 
Mutual Funds the heavenly financial instruments
Published by Advisor India on July 26th 2012 | Investing
The open-ended schemes allow the investor to invest on the mutual funds at any time of the year. The...
 
Know the importance of the different financial forms
Published by Fiona James on April 27th 2012 | Finance
It is very important to have financial forms in order to complete any type of financial business smo...
 
Bad Credit Secured Loan: Huge financial support in spite of bad credit
Published by Ian Foster on February 2nd 2012 | Finance
Bad credit secured loan has introduce by the economics establishment to continue the people whose cr...
 
Free credit report no fee: know your financial standing
Published by Alice Marlen on May 25th 2012 | Finance
When you request for an extension of credit, loan or credit card, the promising credit grantor will ...
 
Free Credit Score: right choice to understand your financial status
Published by Anthony Brian on May 15th 2012 | Finance
Every customer is granted one free credit score report from principal agencies each and every year, ...
 
Great hope for the people with poor financial status
Published by Alice Johnsonn on January 3rd 2012 | Finance
Personal loans no credit check are the best way to access fast cash without undergoing any credit ch...
 
 
Is financial planning the career for you?
Published by Advisor India on July 31st 2012 | Investing
Financial planner, personal financial consultant, financial advisor - the name may be many, but the ...
 
Regain your financial standing through credit counseling Houston
Published by James on March 31st 2012 | Finance
There are lots of people who fall into a debt for different reasons. Usually after falling into a de...
 
Loans for UK People: an easy financial solution
Published by Simuels Jack on June 11th 2012 | Finance
Loans for UK people are very helpful in times of need for monetary assistance. According to one’s ...
 
Loans for Unemployed: a financial contribution to jobless!
Published by Jim Kerry on June 5th 2012 | Finance
Cash loans for unemployed help the disappointed jobless people for pulling out of this financial cri...
 
Digital options growing fast as the foremost financial strategy
Published by Alvin Cook on April 12th 2012 | Investing
Digital options making it possible for investors to fulfill their requirements of right strategy...
 
Equity research firms
Published by Abhijeet on April 18th 2012 | Investing
Equity analysis firms assay the bazaar advice and adviser your advance plans. Disinterestedness anal...